Plain language law

New Zealand law explained for everyone

Fisheries Act 1996

Registration of transfers, mortgages, caveats, etc - Mortgages of quota

144: Application of purchase money

You could also call this:

"What happens to the money when a mortgagee sells quota shares?"

Illustration for Fisheries Act 1996

When a mortgagee sells quota shares, you need to know how the money from the sale is used. The money is used to pay for the sale expenses first. Then it is used to pay the mortgagee the money they are owed. The money is also used to pay the Crown any levies owed under Part 14 that are registered over the quota. After that, any leftover money is paid to the person who borrowed the money. You can find more information about this in the Part 14 section.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM397671.

Topics:
Money and consumer rights > Banking and loansHousing and property > Buying and selling homes
Previous

143: No contracting out, or

"Your rights are protected and can't be changed by other agreements."

Next

145: Transfer by mortgagee, or

"What happens when a mortgagee sells you quota shares"

Part 8Registration of transfers, mortgages, caveats, etc
Mortgages of quota

144Application of purchase money

  1. The purchase money from the sale by the mortgagee of any quota shares shall be applied as follows:

  2. first, in payment of the expenses occasioned by the sale:
    1. secondly, in payment of the money then due or owing to the mortgagee:
      1. thirdly, to the Crown in payment of any levies under Part 14 that are the subject of a caveat registered over the quota:
        1. fourthly, the surplus (if any) shall be paid to the mortgagor.

          Compare